July 11, 2023

Part 2: What’s New in SYSPRO V8 – KANBAN Auto Inventory Replenishment

kanban manufacturing

The version 8 2022 release was one of SYSPRO’s biggest releases to date. For that reason, we want to dedicate an entire blog series to its impressive new features and how they provide our SYSPRO clients with breakthrough technological innovations that improve their future of work. Last time we discussed the feature Embedded Analytics, and today we’re highlighting (in no particular order) the Kanban Auto Inventory Replenishment feature.

Inventory Woes

Overproduction and waste are big concerns in supply chains with losses amounting to $163.1 billion worth of inventory. Reducing surplus and cutting inventory costs are crucial strategies for reducing this waste crisis and minimizing financial loss. While this is, of course, easier said than done, SYSPRO has released a solution in version 8 that can help. This new feature works towards addressing the common supply chain challenges and the issues surrounding inventory waste. It’s called the Kanban Automated Replenishment.

What’s the Hype?

Let us backtrack for a moment. Prior to the new Kanban Automated Replenishment feature rollout, if someone needed to replenish their sales order picking and production lines, it would have been done through manual tracking, forecasting, and ordering of parts led through reporting sometimes from multiple systems. Understandably, a lot of mistakes were made, and things were missed from replenishing warehouse stock manually. SYSPRO Kanban manufacturing inventory management completely automates this process and is used to control the flow of stock and information through SYSPRO’s “just-in-time” system.

Unless you’ve been off the grid for quite a while, you’re likely familiar with the benefits of applying automation to a business. Automation in manufacturing and distribution companies can improve productivity and efficiency, reduce wasted work and time (and errors), and optimize inventory levels. All of which leads to huge cost savings and overall improved profitability. We can’t argue with that. Let’s see how this all works exactly in SYSPRO.

Unraveling the Details

You’ve probably heard the story, but here it is again – Taiichi Ohno developed the scheduling system known as Kanban which revolutionized the automotive industry and was the foundation of the Toyota Production System. SYSPRO’s new Kanban Automated Replenishment feature works in a similar way by automating the flow of stock and ensuring continuous stock delivery for order processing and manufacturing. The bin-stock relationship links the bin to the stock code for efficient and accurate pull levels and quantity.

Using automation, SYSPRO’s Kanban manufacturing feature automates the flow of warehouse stock for order picking and production. Manual activities and movements are reduced by automating bin and warehouse transfers. This is how SYSPRO’s Kanban Automated Replenishment feature turbocharges your inventory management system.

We hope you’re still with us ‘cause there’s more… In the new Kanban Automated Replenishment environment, a replenishment bin is released when a trigger or a card is received from production. This trigger signals to SYSPRO that the bin of parts is depleted and needs replenishing. Almost immediately, the bin is refilled with the required number of components after the empty bin is received from production, either from the same warehouse or from a different warehouse, depending on availability. This refilled bin is then prepared for delivery back to the production line. All of this is done without manual human intervention and with minimal disruption in the production process.

Why Kanban?

Having an adequate supply of parts and materials throughout your warehouse and production processes helps your manufacturing and distribution business run smoothly. A Kanban system is a widely recognized approach to managing inventory, and many companies are catching on to its benefits. According to the 2022 Annual State of Agile Report, Kanban use has exploded from 7% in the 2020 14th survey to 56% in the 2022 survey.

The Kanban manufacturing method also automatically adjusts volumes depending on customer demands so that you can better keep up with evolving market needs, maintain a competitive edge, and operate seamlessly and cost-effectively even during all the ups and downs the industry faces. It’s a wonder how we managed before… SYSPRO’s Kanban Auto Inventory Replenishment feature brings significant advantages to your inventory management processes all without additional resources.

Whether you’re an existing SYSPRO client or not, BT Partners is your hands-on expert in leveraging the depth of SYSPRO’s past and version 8’s release functionality with your manufacturing and distribution business. If you have any questions about these new features & functionality or want to explore opportunities to increase your SYSPRO ROI and workflow efficiencies, please feel free to reach out.

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